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    Rio Tinto–BHP 200 Mt Pilbara iron ore JV: mine planning insights for engineers

    January 15, 2026|

    Reviewed by Joe Ashwell

    First reported on International Mining – News

    30 Second Briefing

    Rio Tinto and BHP have signed two non-binding Memoranda of Understanding to collaborate on extracting about 200 Mt of iron ore from their adjacent Yandicoogina and Yandi operations in Western Australia’s Pilbara. The MoUs cover joint development options for Rio Tinto’s Wunbye deposit and potential integration with BHP’s existing Yandi infrastructure. Shared pit development, haulage and processing concepts could materially affect mine planning, strip ratios and blending strategies across both operators’ Pilbara supply chains.

    Technical Brief

    • MoUs explicitly non-binding, so capex commitments, mine plans and schedules remain outside formal JVs.
    • Shared pit geometries at Yandicoogina–Yandi interface could allow single highwall designs and rationalised ramp layouts.
    • Integration with BHP’s Yandi infrastructure implies potential use of existing primary crushers, overland conveyors and stockyards.
    • Joint haulage concepts raise options for common haul roads, optimised ramp gradients and fewer waste dumps.
    • Blending across Wunbye–Yandi ores would allow tighter control of Fe grade, alumina, silica and phosphorus specifications.
    • Coordinated mine planning could smooth combined production profiles into each operator’s rail and port allocation windows.
    • Collaboration offers scope to reduce overall strip ratios by aligning cutbacks and avoiding duplicated pushbacks along tenement boundaries.

    Our Take

    In our database of 620 Mining stories, Pilbara iron ore rarely features joint developments between majors, so a Rio Tinto–BHP JV on assets like Yandicoogina and Yandi signals a shift from purely competitive rail and blending strategies towards selective cooperation on resource extraction itself.

    The related piece on Rio Tinto’s potential Glencore takeover notes BHP staying out of that consolidation move; collaborating in Pilbara iron ore instead suggests BHP is prioritising operational synergies in Australia over large-scale corporate M&A to defend its iron ore cost base.

    With iron ore one of the few bulk commodities highlighted in the recent Top 50 miners valuation article, locking in up to 200 Mt from Pilbara deposits positions both Rio Tinto and BHP to maintain volume leverage if steel demand softens and higher-cost producers outside Australia come under pressure.

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    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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